We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

A&L Premier 21 ca

Can someone please explain why the AER is 10% but the Gross p.a. is 9.57%. :confused:

http://www.alliance-leicester.co.uk/currentaccounts/index.asp?page=interest-chargesp21&ct=curraccrates

ta

Comments

  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Name Dropper First Post First Anniversary
    Because interest is paid monthly (at the gross p.a. rate).

    The gross p.a. rate of 9.57% compounds to 10% AER (annual equivalent rate).
  • iou_3
    iou_3 Posts: 4 Newbie
    I didn't see the part when interest was paid, mistook p.a. for interest paid once a year. thanks

    ps. anyone want to refer me?
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 345.7K Banking & Borrowing
  • 251K Reduce Debt & Boost Income
  • 450.9K Spending & Discounts
  • 237.7K Work, Benefits & Business
  • 612.4K Mortgages, Homes & Bills
  • 174.3K Life & Family
  • 250.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.